China yesterday imposed trade and investment sanctions on Lockheed Martin Corp and a unit of Raytheon Technologies Corp for supplying weapons to Taiwan.
Lockheed Martin and Raytheon Missiles & Defense are barred from importing goods into China or making new investments in the country, the Chinese Ministry of Commerce announced.
They were added to the “unreliable entity” list of companies whose activities are restricted, because they might endanger national sovereignty, security or development interests, it said.
Photo: Bloomberg
It was not clear what impact the penalties might have.
The US bars most sales of weapons-related technology to China, but some military contractors also have civilian businesses in aerospace and other markets.
The US is Taiwan’s main supplier of military equipment.
Raytheon Missiles & Defense was awarded a US$412 million contract in September last year to upgrade Taiwan’s military radar as part of a US$1.1 billion package of US arms sales to Taiwan.
Boeing Defense, Space & Security received a US$355 million contract to supply Harpoon missiles.
Beijing responded to that sale by announcing sanctions against the CEOs of Raytheon and of Boeing Defense, but gave no details of what they were.
Lockheed Martin has supplied Taiwan’s military with radar, helicopters and air traffic control equipment. It plays a role in the nation’s development of its own fighter jets and navy frigates.
In China, Lockheed Martin has sold air traffic control equipment for civilian airports and helicopters for commercial use.
Beijing announced plans for the “unreliable entity” list in 2019 in response to US restrictions imposed on Chinese telecoms equipment firm Huawei Technologies Co (華為).
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